Sales Cost Rate

The sales cost rate is an estimated percentage of your property’s future sale price that will go toward selling expenses—like agent commissions, title fees, closing costs, and repairs. Investors often use a 6%–8% sales cost rate when calculating net proceeds or building long-term financial models. It’s a crucial variable when projecting profits or planning a 1031 exchange. At Meridian, we include this rate in our investment calculators so clients can estimate their total return—including what they’ll keep after selling and reinvesting.